1-(4-Fluorophenyl)-3(R) -[3(S)-hydroxy-3-(4-fluorophenyl)-propyl)]-4(S)-(4-hydroxyphenyl)-2-azetid inone is disclosed as a cholesterol lowering agent in WO 95/08532, published Mar. 30, 1995. U.S. Pat. No. 5,618,707 discloses stereoselective microbial reduction of a keto intermediate (4-(4-fluoro-benzoyl)butyric acid or a phenyloxazolidinone conjugate thereof) used in the preparation of the azetidinone to the corresponding hydroxy intermediate using the microorganism Zygosaccharomyces balili or Schizosaccharomyces octosporus.